(Updates with the company's stock move in the headline and the first paragraph.)
Axon Enterprise (AXON) shares were down almost 10% in Tuesday trading after the company said it intends to offer $1 billion of 0% convertible senior notes due 2031 in a registered public offering.
The law enforcement technology maker expects to grant underwriters an option to purchase up to an additional $150 million of notes to cover over-allotments, it said.
Axon said it plans to use part of the net proceeds to fund capped call transactions, with the remainder for general corporate purposes, including growth investments and potential acquisitions.
The notes will mature on Sept. 15, 2031, unless earlier converted, redeemed or repurchased, and will not bear regular interest, it added.
Price: $441.61, Change: $-48.57, Percent Change: -9.91%